Scale of Adidas

1886 WordsJan 6th, 20108 Pages

Adidas:

Strengths
-Strong success in Europe
-High-performance products
-Recent selling of subsidiary “dog” Salomon
-In many invents is the biggest sponsor
-Strong management team.
-Strong control over its own distribution channel.
-In the soccer industry, it has a stronghold.
-No bad reputation like child labour or environment pollution.
-Diversity and variety in products offered.
-Strong financial position with minimal long term debts
-Innovative designs in footwear enabling consumers to design their own shoes online
-First movers advantage in e-commerce Weaknesses
-American athletes endorsed by adidas are not as popular as Nike’s
-Nike gaining ground on European soccer market
-Public dissent over use of sweatshops
-E-commerce is…show more content…

Finally, adidas can expect to see revenue increases due to their newly implemented and recently successful own-retail activities. These include concept stores, factory outlets, Internet sales, and parts of Asian markets.

A threat for adidas is that it sees a negative impact on its revenues due to the exchange rate differences between the Euro and the United States dollar. They manufacture most of their product in Asia, where business transactions are conducted in dollars. Therefore, adidas is forced to convert back to the Euro as early as the manufacturing stage. Then, later on, after sales in countries that do not use the Euro.

PORTER'S FIVE FORCES

Barriers to Entry –
Low

Due to the large scale of Adidas, the firm is able to control their costs to retain performance advantage over emerging competitors in the industry. Their web site is more sophisticated and enticing to browse, contributed to their large marketing budgets. The capital injection into web site development is high and must be updated frequently with new promotions and added features to attract online shoppers. There are many proprietary product differences in the industry therefore brand identity has an immediate competitive advantage. Adidas brand is well renowned globally and plays a major role in consumer decision making. Selling footwear online is highly competitive; however, barriers to enter into

1.0 Introduction
Adidas is the second largest sportswear and apparels manufacturer (Dogiamis & Vijayashanker, 2009). By far, Adidas holds a market share of 22% (Dogiamis & Vijayashanker, 2009). Adidas had also registered the infamous ‘3 stripes’ as its trademark (Berntson, Jarnemo & Philipson, 2006). The founders of Adidas, Adolf and Rudolf Dassler had the vision of providing athletes with the best suited pair of shoes for their respective sports (Dogiamis & Vijayashanker, 2009)…

Adidas Case
1. To evaluate the competitive environment in which adidas launched the “mi adidas” pilot I will use the five competitive forces model.
|Competitive Force |IT Influence on Competitive Force |
|Threat of New Entrants |LOW - The main brands in the market (Nike, New Balance, and Adidas) have already |
| |launched their respective…

PRODUCTS
Running
Adidas currently manufactures several running shoes, including the adiStar Control 5, the adiStar Ride (the replacement for the adiStar Cushion 6), the Supernova Sequence (the replacement for the Supernova Control 10), and the Supernova Cushion 7 (which will soon be replaced by the Supernova Glide), among others. In addition, their performance apparel is widely used by runners. Adidas also uses kangaroo leather to make their more expensive shoes.
Association football
One of the…

Introduction
Adidas is a company that manufactures shoes and sport apparel. The founder is Adolf Dassler who is German. The name created by combination of the name and surname Adi Dassler, who started producing shoes in 1920s with the help of his brother Rudolf Dassler. That make costumer, to recognize Adidas is three parallel stripes of the same color.
Slogan: “IMPOSSIBLE IS NOTHING”
1. History 1949-2005
Due to the death of Adolf’s son (Horst Dassler), the Company was bought in 1990 by Bernard…

adidas AG (German pronunciation: [ˈadiˌdas]) is a German multinational corporation that designs and manufactures sports clothing and accessories based in Herzogenaurach, Bavaria, Germany. Frequently mispronounced as (German pronunciation: [ ˈadIˌdɐ̯s]). It is the holding company for the Adidas Group, which consists of the Reebok sportswear company, TaylorMade-Adidas golf company (including Ashworth), Rockport, and 9.1% of FC Bayern Munich. Besides sports footwear, Adidas also produces other products…

sell Adidas to Lyonnais bank. Lyonnais sold Adidas to Robert Louis-Dreyfus who was also the president of the Olympique de Marseille football team. In 1997, Adidas AG acquired the Salomon Group, and its corporate name was changed to Adidas-Salomon AG. Seven years later, top English fashion designer Stella McCartney launched a joint-venture line with Adidas. This line was a sports performance collection for women called "Adidas by Stella McCartney". After 2 years, Adidas introduced the Adidas 1, the…

Page 1: Introduction
Since it was established in Germany in 1949, by Adolf Dassler, adidas has been synonymous with the sporting industry. Today, adidas is a global public company and is one of the largest sports brands in the world. It is a household brand name with its three stripes logo recognised in markets across the world. The company’s product portfolio is vast, ranging from state-of-the-art sports...
Page 2: The marketing mix
For most organisations the marketing function is vital…

of the adidas group, in terms of its values, ethics and performance
1. Executive summary
The adidas Group is globally the second largest manufacturer of sporting attire, controlling almost a quarter (22%) of the market compared to the 33% currently commanded by its biggest rival Nike1. Although a multinational company, it was founded originally in Germany and thus its central headquarters are situated in Herzogenaurach, and home to more than 2600 workers2. Furthermore worldwide the adidas group employs…

CASE- STUDY THE ADIDAS- REEBOK MERGER
The case discusses the proposed merger of Reebok International Limited with Adidas-Salomon AG. It describes the recent trends and studies the ongoing merger in the sporting goods industry. The case presents the rationale behind the decision to merge. Finally, the case ends with a debate on whether the merger would be successful.
Issues » The recent trends and structure facing the sporting goods industry » The reasons for the ongoing mergers and acquisitions…